The government has extended the deadline for resolving pending income tax appeals under the Vivad Se Vishwas Scheme by one month. The Central Board of Direct Taxes (CBDT) announced that the due date for determining the amount payable has been moved from December 31, 2024, to January 31, 2025, through an official notification.

Initially introduced in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman, the Vivad Se Vishwas Scheme was officially notified by the CBDT on September 20 and came into effect on October 1.

The scheme offers reduced settlement amounts for ‘new appellants’ compared to ‘old appellants.’ Additionally, taxpayers who submit their declarations by January 31, 2025, will benefit from lower settlement amounts than those who file later. This initiative reflects the government’s continued efforts to streamline litigation management in the income tax domain. 

Who Can Use Vivad Se Vishwas Scheme?

The Vivad Se Vishwas Scheme, 2024, applies to cases where appeals have been filed with the Commissioner (Appeals), Dispute Resolution Panel (DRP), Income Tax Appellate Tribunal (ITAT), High Court, or Supreme Court.

Who Will Get Benefit From Vivad Se Vishwas Scheme?

-A person with an appeal, writ petition, or special leave petition pending before an appellate authority, whether filed by themselves, the income-tax authority, or both, as of the specified date.

-A person for whom the Dispute Resolution Panel has issued a direction under subsection (5) of section 144C of the Income-tax Act, but whose assessment has not been completed by the Assessing Officer under subsection (13) of that section by the specified date.

-A person who has submitted objections to the Dispute Resolution Panel under section 144C of the Income-tax Act, where no direction has been issued by the panel on or before the specified date.

-A person who has applied for revision under section 264 of the Income-tax Act, with the application still pending as of the specified date.